On March 29, 2016, the Oregon Public Utility Commission (Oregon Commission) issued two orders resolving issues in PacifiCorp’s and Idaho Power’s separate proposals to lower the contract term and size thresholds for qualifying facilities (QF). The Oregon Commission retained the twenty-year contract term, with fifteen years of fixed prices. The Oregon Commission lowered the size threshold for published rates for solar QFs only to 3 megawatts (MW), but also allowed solar QFs to use standard contracts up to 10 MW in size. The Commission did not alter the size threshold for any other QFs.
PacifiCorp’s Oregon Avoided Cost Rate Reduction Rejected
On March 22, 2016, the Oregon Public Utility Commission (Oregon Commission) issued an order rejecting PacifiCorp’s avoided cost rate reduction. PacifiCorp claimed not to need new renewable resources, which the Oregon Commission did not believe because the recent amendments to the Oregon renewable portfolio standard will double the utility’s need to acquire new renewable resources. The Commission directed PacifiCorp to work with staff, and other interested parties to establish a process to review PacifiCorp’s avoided cost rates.
Avista’s Oregon Rates Increase
On March 15, 2016, the Oregon Public Utility Commission (Oregon Commission) approved an increase to Avista Corporation’s (Avista) revenue requirement by $4,460,000, representing a 4.9% rate increase. The Oregon Commission resolved a number of other important issues, including the Energy Trust of Oregon (ETO) taking over the utility’s energy efficiency program, a revenue-per-customer decoupling mechanism, a new capital structure and return on equity, the prudence of certain capital additions, and recovery of pension, medical, bonuses and other costs.
PGE’s Avoided Cost Rate Reduction Rejected
On January 26, 2016, the Oregon Public Utility Commission (the Oregon Commission) rejected Portland General Electric Company’s (PGE) proposed avoided cost rate reduction. PGE had proposed to significantly lower avoided cost rates outside of the established rules and processes. The Oregon Commission chastised PGE for makings its procedurally incorrect filing, but urged the utility to re-file and have its avoided cost rates properly evaluated.
Utah Commission Maintains Long-Term QF Contracts
On January 7, 2016, the Utah Public Service Commission (the Utah Commission) issued an order rejecting PacifiCorp’s (dba Rocky Mountain Power) proposal to shorten the qualifying facility (QF) contract term from twenty to three years. The Commission instead lowered the contract term to fifteen years. The order is a victory for non-utility owned renewable energy generators in Utah.
Oregon Commission Approves PacifiCorp’s Direct Access and Power Cost Filing
On December 11, 2015, the Oregon Public Utility Commission (Oregon Commission) issued its final order approving PacifiCorp’s Oregon power costs and direct access program in their entirety. The order will result in a small rate increase and no changes to PacifiCorp’s direct access program, which has low participation levels.
Washington Commission Rejects PacifiCorp PURPA Change
On November 12, 2015, the Washington Utilities and Transportation Commission (the Washington Commission) issued its final order in PacifiCorp’s Washington avoided cost case. The Washington Commission rejected the company’s proposal to eliminate capacity payments. The Washington Commission concluded that some sort of capacity payment was warranted because PacifiCorp’s projected market prices did not reasonably account for the company’s full avoided costs.
Idaho Commission Limits PURPA Contract Terms
On August 20, 2015, the Idaho Public Utilities Commission (Idaho Commission) issued an order shortening the contract term for certain new and renewing qualifying facilities (QF) to two years. The decision is a major loss for wind and solar QFs, and all projects sized 10 megawatts (MW) and above. Non-wind and solar QFs under 10 MWs will remain eligible for long term contracts at published avoided cost rates. It is likely that the Idaho Commission’s order will significantly reduce the development of new wind and solar in Idaho, which was experiencing record growth.
Ninth Circuit Rejects Challenge to FERC Decisions on BPA Oversupply
On August 10, 2015, the Ninth Circuit Court of Appeals (Ninth Circuit) rejected a challenge to the Federal Energy Regulatory Commission’s (FERC) decisions finding that Bonneville Power Administration’s (BPA) policies discriminated against wind generators. The Ninth Circuit did not address the merits of the appeal, but found that the BPA’s wholesale preference customers did not have statutory standing to challenge FERC’s decision.
WUTC Lowers PacifiCorp Rate Increase
On March 25, 2015, the Washington Utilities and Transportation Commission (Washington Commission) denied PacifiCorp’s $27.2 million (8.5% average) rate increase, and instead authorized the utility to increase rates $9.6 million (3.0% average). In reducing PacifiCorp’s proposed rate increase, the Washington Commission rejected a number of PacifiCorp’s efforts to re-litigate issues from the utility’s last general rate case that are currently being appealed to the Washington courts, denied recovery of deferred costs, and ordered the utility to file a power cost adjustment mechanism.